Solve the two problems below then write 3 paragraphs for each solution that explains the solution using the concepts from the assigned reading that relate to the solution.
Must be written in APA and appropriate headers.
6-9.Soft Key is trying to determine how best to produce its newest product, DVORK keyboards. The keyboards could be produced in-house using either process A or process B, or purchased from a supplier. Cost data are given below. For what levels of demand should each process be chosen?
|
Fixed Cost |
Variable Cost |
|
|
Process A |
$ 8,000 |
$10 |
|
Process B |
$20,000 |
$ 4 |
|
Supplier |
$ 0 |
$20 |
6-10.NanoTech is ready to begin production of its exciting new technology. The company is evaluating three methods of production: (A) a small production facility with older equipment, (B) a larger production facility that is more automated, and (C) subcontracting to an electronics manufacturer in Singapore. The costs of each alternative are shown below. Determine for what level of demand each production process should be chosen.
|
Process |
Fixed Cost |
Variable Cost |
|
A |
$200,000 |
$40 |
|
B |
$600,000 |
$20 |
|
C |
$ 0 |
$60 |
(Russell 255)
Russell, Roberta S., Bernard Taylor. Operations and Supply Chain Management, 8th Edition. Wiley, 2013-12-02. VitalBook file.
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